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The 87 is the part of the year group with engine harness breaking down. It usually shows itself where the injector ground wires are bolted to the manifold. This first link is for your heater. Sounds like a vacuum problem. With the car at idle, heater on for a little bit. You should fell both hoses that enter the firewall. At first start, one will get warm the other cold. When the heater valve opens, both hoses should get hot.
http://www.brickboard.com/FAQ/700-900/HeatingAirConditioning.htm
The second link is for the bad milage.
http://www.brickboard.com/FAQ/700-900/EnginePerformanceSymptoms.htm
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